World stock markets leaned mostly upward on Wednesday, with investor anticipation building for Nvidia’s quarterly earnings report and a fresh update on the U.S. economic status. In Europe, Germany’s DAX climbed 1.3% to reach 22,696.44, while the CAC 40 in Paris saw a 1.1% increase to 8,163.84. The UK’s FTSE 100 experienced a 0.6% rise, touching 8,716.51. Over in the U.S., futures for the S&P 500 showed a 0.5% uptick, and the Dow Jones Industrial Average futures improved by 0.3%.
Anticipation is also high as the U.S. Commerce Department is set to release the final estimate for the fourth quarter economic performance of 2024. Currently, the economy seems robust, with steady growth. However, recent economic data that have failed to meet expectations have somewhat dulled the momentum that has lately driven Wall Street to frequent record highs. According to Stephen Innes of SPI Asset Management, what was expected to be a narrative of a soft economic landing is rapidly turning into a hard reality, with investors now scrambling to adjust their strategies.
Asian markets were buoyant, especially Chinese markets bolstered by strong tech stock purchases. Hong Kong’s Hang Seng surged 3.4% to 23,811.21, and the Shanghai Composite increased by 0.8% to 3,372.74. Notable gains in Hong Kong included Meituan, which skyrocketed 9.8%, Alibaba, which rose by 4.8%, and Tencent Holdings, advancing 3.4%. Baidu also climbed 3.3%. These gains follow signals from Beijing suggesting increased support for the private sector after previous crackdowns on tech industries.
In other Asian markets, Tokyo’s Nikkei 225 slipped 0.3% to 38,142.37, as major Japanese trading firms declined after Warren Buffett’s announcement of increased investments in these companies via Berkshire Hathaway. Meanwhile, South Korea’s Kospi marked a 0.4% rise to 2,641.09, and Australia’s S&P/ASX 200 saw a slight decline of 0.1% to 8,240.70. Taiwan’s Taiex gained 0.5%, and Thailand’s SET increased by 0.9%.
On Tuesday, Wall Street saw a dip in some of its top-performing stocks following reports of growing pessimism among U.S. households regarding the economy. The S&P 500 decreased by 0.5%, the Nasdaq composite dropped 1.4%, while the Dow industrials managed a 0.4% increase. Tesla shares fell sharply by 8.4%, and Nvidia declined by 2.8%. Investors await Nvidia’s earnings report, amid news that a Chinese company, DeepSeek, has developed a language model competing with those of U.S. firms, challenging assumptions about future investments in AI infrastructure leveraging Nvidia’s chips.
For the first time since June, a metric tracking consumer expectations for the economic outlook fell below a level that usually signals impending recession, as per The Conference Board.Broad-based pessimism has set in, crossing various demographic and income groups. Wall Street monitors consumer sentiment closely, as confidence helps stave off economic downturns. Reports echo the University of Michigan’s earlier finding that while consumers view the present as stable, concerns about future economic health are prevalent.
Elsewhere, Bitcoin was trading around $89,000 early Wednesday. U.S. benchmark crude oil held steady at $68.93 per barrel, whereas Brent crude dropped $1.60, reaching $72.45 per barrel. Currency movements saw the U.S. dollar rise to 149.34 Japanese yen from 149.03 yen, and the euro reduced slightly to $1.0495 from $1.0515.
